The draft law On Amending the Budget Projection

Jan 11, 2017

The Ministry of Finance have developedthe draft law On Amending the Budget Projection (the “Draft law”) and submitted it to the Parliament on 23th August 2016. This Draft law introduces a number of changes to the tax and social health and insurance legislation which are aimed at increasing the budget revenues and decreasing the expenses.

Personal income tax:

  • If an individual’s annual taxable income is up to MNT 30 million, it shall be taxed at 10 percent. If such income exceeds MNT 30 million, the tax should apply as MNT 3 million plus 25 percent on income exceeding the 30 million threshold.
  • Interest income on deposits will be taxable.

Mineral royalty tax:

  • According to the current law, a mineral royalty tax on gold is 2.5 percent, if gold is sold to the Bank of Mongolia or its authorized bank, and extra mineral royalty tax rate is zero.
  • This zero rate should have been applied until 1 January 2019, however, the Draft law proposes to apply a zero rate until 1 January 2017 only.

Contact us

Sergi Kobakhidze

Tax and Legal Services Partner, PwC Mongolia

Tsendmaa Choijamts

Director, Tax and Legal services, PwC Mongolia

Tel: +976 70009089

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